Many consider that the US dollar is ‘Cleanest dirty shirt,’ but . . .
(Pixabay photo)
The Euro seems to be benefiting from US policies:
Fluctuations in the US dollar have prompted alternative options, leading Emerging Markets to surge in issuing euro-denominated bonds.
21 July 2025
According to Zhitong Finance APP, issuers from Emerging Markets are rushing into the Euro bond market at the fastest pace in over a decade, leveraging the strong global demand for non-USD assets to diversify their financing. …
So far this year, the USD has fallen by about 8%. With Trump’s tariff policies and criticisms of the Federal Reserve causing market turmoil, Asset Management Institutions are reevaluating their years-long overallocation strategy toward US Assets. Signs of weakening demand for the USD continue to accumulate, while the proportion of hedging against currency volatility risks remains low, indicating that the USD may further soften. So far this year, the USD has fallen by about 8%. With Trump’s tariff policies and criticisms of the Federal Reserve causing market turmoil, Asset Management Institutions are reevaluating their years-long overallocation strategy toward US Assets. Signs of weakening demand for the USD continue to accumulate, while the proportion of hedging against currency volatility risks remains low, indicating that the USD may further soften. https://news.futunn.com/en/post/59377321/fluctuations-in-the-us-dollar-have-prompted-alternative-options-leading?level=1&data_ticket=1753069936870295
There is a cost to USA trade and sanctions policies. An unintended consequence of Donald Trump’s policies has been that more wealth is headed toward the euro and less towards the USA dollar.
The BBC reported the following:
US debt is now $37trn – should we be worried? …
5 July 2025
Trump’s tax-cutting budget bill is expected to add at least $3 trillion (£2.2 trillion) to the US’s already eye-watering $37tn (£27tn) debt pile. There is no shortage of critics of the plan, not least Trump’s former ally Elon Musk, who has called it a “disgusting abomination”.
The growing debt pile leaves some to wonder whether there is a limit to how much the rest of the world will lend Uncle Sam.
Those doubts have been showing up recently in the weaker value of the dollar and the higher interest rate investors are demanding to lend money to America. …
So what might that trauma look like?
The first option is a drastic reduction in government spending, a big increase in taxes or both.
Ray Dalio suggests that cutting the budget deficit from its current 6% to 3% soon could head off trouble in the future.
Trump’s new budget bill did cut some spending, but it also cut taxes more, and so the current political trajectory is going the other way.
Secondly, as in previous crises, the US central bank could print more money and use it to buy up government debt – as we saw after the great financial crisis of 2008.
But that can end up fuelling inflation and inequality as the owners of assets like houses and shares do much better than those who rely on the value of labour.
The third is a straightforward US default. Can’t pay won’t pay. Given that the “full faith and credit of the US Treasury” underpins the entire global financial system, that would make the great financial crisis look like a picnic.
‘Cleanest dirty shirt’
So how likely is any of this?
Right now, mercifully, not very.
But the reasons why are not actually that comforting. The fact is, whether we like it or not, the world has few alternatives to the dollar.
Economist and former bond supremo Mohamed El-Erian told the BBC that many are trying to reduce dollar holdings, “the dollar is overweight and the world knows it, which is why we have seen a rise in gold, the euro and the pound, but it’s hard to move at scale so there’s really very few places to go”.
“The dollar is like your cleanest dirty shirt, you have to keep wearing it.”
Nevertheless, the future of the dollar and the world’s benchmark asset – US government bonds – is being discussed at the highest levels.
The governor of the Bank of England recently told the BBC that the levels of US debt and the status of the dollar is “very much on [US Treasury] Secretary Bessent’s mind. I don’t think the dollar is fundamentally under threat at the moment but he is very aware of these issues and I don’t think it is something that he underestimates.”
Debt of $37tn is an unfathomable number. If you saved a million dollars every day, it would take you 100,000 years to save up that much. https://www.bbc.com/news/articles/c1lj8rmyn5eo
Despite many believing that the US dollar is the “cleanest dirty shirt,” its value against many currencies, including the euro, has dropped this year.
Now, consider a story, I have reported here before:
There once was a movie that had two men camping outdoors. Suddenly, one man yells, “Run, a bear!” The other man yells back, “You can’t outrun a bear.” The first man responded with, “True, but all I have to do is to outrun you.”
The implication is that the first man only needed to be a better runner than the second man, which presumably the bear would consider to be weaker, and then catch and destroy. This would, supposedly, allow the first man to survive.
From an economic perspective, the story basically is that the debt and economic situation in Europe does not need to be perfect, only perceived to better (or at least similar) than that of the USA to someday surpass it. The euro may become perceived as the “cleanest dirty shirt,” especially since I believe it will also have at least implied backing by gold.
While the Bible shows that gold and silver will one day be considered worse than useless (cf. Ezekiel 7: 19), it also shows that it will have value after the USA is defeated (cf. Daniel 11:39-43).
That being said, yes the USA dollar will collapse one day–and some type of European-backed currency, possibly the Euro or perhaps some type of international basket of currencies will replace the US dollar as the world’s reserve currency.
Here is something from my book Unintended Consequences and Donald Trump’s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?:
It may be of interest to note that back in the 1970s Europe was looking for a gold-backed currency.[i] European central banks have, overall (there have been sales too by the European central banks), been accumulating gold since, and some in 2024 believe that the Europeans are still planning on having some type of gold-backing (or at least implied) of a European currency.[ii]
Since many are now questioning the role of the USA dollar as the world’s reserve currency, more are looking into other currencies as well as gold.
Gold will set records in U.S. dollar terms.
In 2017, I also published that last statement in my book related to Donald Trump, and it did hit records in July and August in 2020. [iii] Now, despite having ups and downs, as well as records hit in 2024, gold will set further records in U.S. dollar terms in the relatively near future.
It has been asserted that:
The only replacement for fiat {currency} is a currency credibly backed by gold.[iv]
Although the above can be debated, the reality is after the elimination of the USA and the crash of its dollar, the world will want something more stable than unbacked currency. Thus, it is likely that some type of gold-backed currency will emerge as the preferred reserve currency in the world.
It has long been reported that various nations around the world are already in the process of accumulating gold to one day overthrow the U.S. dollar—and that the “U.S. is unprepared for this strategic alternative to dollar dominance.”[v] Various steps were also taken in 2022 and 2024.[vi]
When the U.S. dollar totally collapses people all around the world will consider that even if the euro (or something similar) is strong, having a more gold-backed currency would be safer.
The collapse of the USA dollar will shake a lot of the world’s confidence in non-gold backed currencies. The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the USA dollar or various other currencies.
Having the European power acquiring more gold to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.
The debt accumulation policies of the Obama-Biden and the Trump-Pence Administrations, which were a massive acceleration of the previous policies of the Bush Administration, have to a large degree been continued and expanded by the Biden-Harris Administration.
The increases in America’s debt are heading the world into the time when something other than the U.S. dollar will be valued as its reserve currency.
A Trump-Vance Administration would need to make massive changes to possibly prevent this.
The USA and its dollar are at serious risk.
The increases in America’s debt are leading the world into the time when something other than the U.S. dollar will be valued as its reserve currency.
The USA and its dollar are at serious risk.
[i] Nieuwenhuijs J. Europe Has Been Preparing A Global Gold Standard Since The 1970s. SeekingAlpha.com, July 16, 2020
[ii] Nieuwenhuijs J. Europe Is Finalizing Preparations for a Gold Standard. ActivistPost.com, November 9, 2024
[iii] Gold hits new record, posts best month since 2016 CNBC, July 30, 2020; Woodall T. Gold surges to new highs as US dollar weakens despite growing macro risks. S&P Global, August 10, 2020
[iv] MacLeod A. Designing a new currency is impractical. Goldmoney Insights, March 24, 2022
[v] Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016
[vi] Guistra F. Why the U.S. dollar will be replaced as the dominant global currency — sooner than you think. Toronto Star, July 5, 2022; Bezek I, Duggan W. De-Dollarization: What Would Happen if the Dollar Lost Reserve Currency Status? US News & World Report, November 2024
The US dollar will one day be worth no more than its scrap or burning value, other than perhaps as a collector’s novelty.
As far as gold as a partial replacement for the US dollar, the Continuing Church of God (CCOG) put out the following video on our Bible News Prophecy YouTube channel:
China introduced something that was called the gold-petro-yuan back in 2018. Since then, the global share of US-dollar-dominated exchange reserves have dropped to 59.0%. In April 2021, China became the first major economy to unleash a Central Bank Digital Currency. China also has given its banks permission to import large amounts of gold. Is China preparing for a gold-backed yuan to push aside the US dollar or to help it survive a US dollar cataclysm? Are other nations preparing to push the US dollar aside? Do Europeans seem to have the most gold? Are Europeans prophesied to gain more gold? Is the US debt trajectory sustainable per Fed Chairman Jerome Powell? Does the Bible warn of the end coming to the highly indebted in Habakkuk 2:6-8? Why does it looked like a gold-backed currency will replace the US dollar? Will the US dollar, ultimately, become essentially worthless? Dr Thiel addresses these issues and more.
Here is a link to our video: Gold Backed Currency to Replace the US Dollar?
The US dollar will collapse a few years before Jesus returns.
If you think that the USA and its dollar will continue to be number 1 and claim to believe the Bible, please consider biblical prophecies such as Daniel 11:39; Habakkuk 2:6-8; Isaiah 10:5-11 (see also USA in Prophecy: The Strongest Fortresses and/or watch Do these 7 prophesies point to the end of the USA?).
Hopefully, you are taking the proper spiritual steps now, whether or not you might be American.
Some items of possibly related interest may include:
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold and silver? Two videos of related interest may be: Germany, Gold, and the US Dollar and Silver, Science, and Scripture.
Unintended Consequences and Donald Trump’s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies? Is Donald Trump going to save the USA or are there going to be many disastrous unintended consequences of his statements and policies? What will happen. The link takes you to a book available at Amazon.com.
Unintended Consequences and Donald Trump’s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies? Kindle edition is available for only US$3.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Unintended Consequences and Donald Trump’s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?
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